CDS Crypto News Former Terra CFO Accused of Fraudulent Marketing, According to Report
Crypto News

Former Terra CFO Accused of Fraudulent Marketing, According to Report

Seoul prosecutors have leveled accusations against the former Terra executive, alleging that he obtained $40 million in illicit gains through deceiving investors.

175
Former Terra Cfo Accused Of Fraudulent Marketing, According To Report

Crypto News- It’s been reported that South Korean authorities have taken Han Chang-joon, the former Chief Financial Officer of Terraform Labs, into custody on Thursday. According to local news, he’s accused of making unfair profits totaling 53.6 billion Korean won ($40 million) through allegedly fraudulent marketing of the Terra stablecoin.

Han’s arrest comes after he was extradited from Montenegro on Monday, following his arrest last March for attempting to travel with forged documents. This incident involved Terra co-founder Kwon Do-hyeong, also known as Do Kwon.

Former Terra CFO Accused of Fraudulent Marketing, According to Report

Reports suggest that Seoul prosecutors allege Han participated in fraudulent cryptocurrency sales by misleadingly promoting Terra as a viable real-world payment option. A former Terra developer testified during Monday’s trial in Seoul, claiming that Terraform Labs executives were aware of regulatory obstacles preventing Terra’s use in payments. However, Terra co-founder Shin Hyun-seung argued that regulators hadn’t provided clear guidelines on cryptocurrency payments.

Additionally, Han faces charges related to selling Luna cryptocurrency without proper securities registration, as well as leaking around 100 million financial records of Chai Pay customers to the Terra blockchain. Chai Pay, a payments company founded by Terra co-founder Shin Hyun-seung (Daniel Shin), had close ties with Terraform Labs.

As for Do Kwon, he awaits a decision on extradition while being held in custody in Montenegro. Local authorities are still deliberating whether to extradite him to the U.S. or South Korea, with his detention period expected to end on Feb. 15.

Former Terra Cfo Accused Of Fraudulent Marketing, According To Report

Leave a comment

Leave a Reply

Related Articles

Sui Blockchain Faces First Major Outage: What Happened and What’s Next

Sui blockchain faces its first major outage—learn what happened, the impact on...

MicroStrategy Stock Reaches New High as Bitcoin Surges Above $98,000

MicroStrategy’s stock surged to a new all-time high as Bitcoin reached $98,000,...

Mysten Labs Resolves Sui Blockchain Outage, dApps Resume Functioning

Mysten Labs Resolves Sui Blockchain Outage, dApps Resume Functioning

Top 3 Cryptos on November 21: Qubetics Soars as Ethereum and Solana Face Resistance

Top 3 Cryptos on November 21: Qubetics Soars as Ethereum and Solana...